Planning Iraq's Wireless Future

A U.S. representative from California defended his call for U.S. agencies rebuilding Iraq after the current war to use Code Division Multiple Access instead of a popular mobile technology used in the Middle East, saying that U.S. companies should benefit from the rebuilding effort.

Representative Darrell Issa (R-California) sent a letter dated Wednesday to the U.S. Department of Defense and the U.S. Agency for International Development asking them to build a wireless system in Iraq based on CDMA instead of the rival Global System for Mobile Communications, or GSM, equipment for which is produced by French and German companies, he said.

About 30 other lawmakers had signed the letter as of Thursday afternoon. Late Wednesday, Issa also introduced a bill requiring the federal agencies to use U.S.-based CDMA technology while rebuilding Iraq, and requiring the preference of U.S. contractors for all government rebuilding efforts--presuming, of course, that the U.S. wins the war there.

The bill wouldn't stop private companies from installing GSM systems, said Dale Neugebauer, Issa's chief of staff. "We're talking about funds that'll come from U.S. taxpayers," Neugebauer added. "CDMA is a U.S. industry."

Out of Step?

Some wireless analysts have criticized Issa's plan as being out of step with most other wireless services in the Middle East, potentially creating problems with roaming. Issa, who represents part of the San Diego area, wants to support U.S. companies in the rebuilding effort, including CDMA pioneer Qualcomm, which is based in San Diego outside of Issa's district.

Issa claimed CDMA is a superior technology, and Neugebauer argued that CDMA is more compatible with delivering broadband and upcoming third-generation wireless services than GSM. "Iraq is a wealthy country," Neugebauer said. "It's going to be a wealthy country once the war is over. The people are going to expect, going to want the advanced broadband."

But London-based consultancy Ovum argued Thursday that both CDMA and GSM have their strong points, with GSM the dominant technology in Iraq's neighboring countries of Turkey, Israel, Kuwait, and Saudi Arabia.

"Building a GSM network in Iraq is a better solution for future roaming capability and device interoperability, very important in integrating Iraq economically into the region," the research company said in a statement. "More practically, U.S. soldiers using CDMA devices in Iraq would still need to use GSM phones when they are back in regional bases outside the country."

Making Money

Even if CDMA sales in post-war Iraq come from non-U.S. cell phone companies, the Issa bill would funnel money back to the U.S. patentholders, Neugebauer said. Part of Issa's motivation is retaliation for the lack of support from the French and German for the U.S. war in Iraq, Neugebauer said, but that is not the sole motivation, he said.

Getting back at the French and Germans "appeals to people when we talk to them about it," Neugebauer said. "But the underlying argument over how we spend U.S. dollars is a valid one."

Ovum argued that Issa's position is ironic since the GSM and CDMA camps are beginning to work together. "The wireless industry now realizes that subscribers care less about the technology than about the services the technology enables and how much it costs," according to Ovum.

Collaboration is becoming a key strategy in the wireless industry, the Ovum press release added, and that "may be a useful lesson for the politicians."